Fashion

Retailers see fastest drop in June sales since 2009 financial crisis


UK retail sales volumes in June fell at the fastest rate since March
2009, according to a new report by the CBI (Confederation of British
Industry).

The CBI’s monthly retail sales balance fell to -42 from -27 in May.
Grocers were the largest contributors to the fall in sales volumes, with
the hardware & DIY and footwear & leather sub-sectors also reporting
declines.

Across the retail sector, internet sales stalled in the year to June,
marking the weakest growth since the question was first introduced to the
survey in 2009. The CBI said internet sales growth is expected to pick up
next month, but at a pace well below the long-run average.

Alpesh Paleja, CBI principal economist, said in a statement: “This
month’s drop in sales should be taken with a pinch of salt, given the
backdrop of last June’s heatwave and the start of the World Cup. But even
accounting for both factors, underlying conditions on the High Street
remain challenging. Retailers are having to continually compete for the
attention of value-conscious shoppers, in the age of digital disruption.

“The new Prime Minister must help support retailers by reducing the high
cumulative burden of costs they face. This should start by urgently
reviewing the dire business rates system, which is unfairly impacting UK
high streets and deterring much needed investment.”



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